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Hi Sir,
May I know why the NIL Rate Band 325,000 can be used twice in the example?
I thought 325000 NRB already used and nothing left when we calculated the IHT on the 2 CLT when the transfer made? (so we only get IHT 31,250)
Why when you calculate the Lifetime transfers chargeable at Death, the NRB 325,000 can be again used for the PET and CLT?Thanks.
The NRB is not being used twice – it is being used correctly in each of 2 SEPARATE computations.
Firstly in computing any IHT that arises on the lifetime transfers when they are made – only CLT’s.
Secondly in the computation to compute any IHT that arises on lifetime transfers made within the 7 years of death – this will account for any ADDITIONAL tax due on those CLT’s falling within this period and also taxing for the one and only time the PET’s that have been made during this 7 year period.
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